Trade

India's foreign trade has expanded rapidly following sweeping
trade policy and exchange rate reforms during 1991-93. India's
total trade has expanded more than eleven-fold from $46 billion in
1990/91 (April-March fiscal year) to about $465 billion in
2009/10. During this period, exports grew 13 percent annually
and imports grew 14 percent annually in U.S. dollar terms, with
exports reaching $179 billion in 2009/10 and imports reaching $287
billion. Despite this expansion, India's share of world trade
remains small, rising from 0.5 percent in 1990 to about 1.4 percent
in 2010.

The growth of India's foreign trade since the reforms of 1991-93
has contributed to the strengthening of India's balance of payments
and foreign exchange reserve positions. In 1990, prior to the
reforms, India's foreign exchange reserves were $5.8 billion-the
equivalent of just two and a half months of imports. In
2009/10, reserves reached more than $279 billion-equivalent to
about one year of imports-providing Indian policymakers with
significantly more flexibility in adjusting domestic and trade
policies.

Agricultural Commodity Trade

India's agricultural trade has also expanded rapidly since the
early 1990s, with agricultural imports growing 16 percent annually
in U.S. dollar terms during 1990-2009 and exports rising about 12
percent annually. Agricultural imports totaled nearly $11.0 billion
in 2009/10, while exports reached about $15.9 billion in the same
period. Agricultural products account for about 9 percent of
India's total exports and 4 percent of total imports in
2009/10.

Edible oils and pulses (includes
chickpeas, pigeon peas, lentils, dry peas, etc.), of which India
emerged as a major importer during the 1990s, continue to account
for the bulk of India's agricultural imports. Other major
items imported on a regular basis include raw cashew nuts (for
processing), tree nuts (primarily almonds), and fruit (primarily
apples). India remains a periodic importer of wheat when needed to
replenish food security stocks, and sugar, when needed after
cyclical downturns in domestic production.

U.S.-India Agricultural Trade

U.S.-India two-way agricultural trade has expanded about 9
percent annually between 1990 and 2010, reaching $2.35 billion in
2010. U.S. agricultural exports to India grew 10.2 percent per year
during 1990-2010, while U.S. imports from India grew 9.0 percent
annually. However, India maintains a positive agricultural trade
balance with the United States; U.S agricultural imports from India
were $1.59 billion in 2010, while U.S. agricultural exports to
India totaled $755 million.

Major regular U.S. agricultural exports to India now include
edible tree nuts (primarily almonds), raw cotton, fresh fruit
(primarily apples), and pulses. Vegetable oils are a
significant category of trade in some rears, depending on the
competitiveness of U.S. soybean oil in the Indian market. Growth in
U.S. exports to India has accelerated to 14 percent annually since
2000, with faster growth in many categories of agricultural trade,
including fruit and vegetables, pulses, and vegetable oils.
However, U.S. grain exports to India have declined along with
overall Indian cereal import demand.

The United States imports a wide
variety of agricultural products from India, with tree nuts
(primarily cashews), spices, essential oils, basmati rice, and
fresh and processed fruits and vegetables accounting for most U.S.
imports. Total U.S. agricultural imports from India grew about
9 percent annually between 1990 and 2010, but annual growth has
slowed to about 7 percent since 2000, with most categories of U.S.
imports showing slowed
growth.